New Delhi: The wait for satellite internet in India just got longer. Starlink, backed by Elon Musk, is facing fresh regulatory roadblocks that could delay its commercial rollout in the country.
The company has already secured key approvals like the GMPCS licence and authorisation from IN-SPACe. It has even signed reseller deals with Reliance Jio and Bharti Airtel. But new concerns around foreign investment and national security are now slowing things down, according to a report cited by ETTelecom.
Why is Starlink India delayed?
Starlink still needs final approvals before it can start operations. The biggest hurdle right now is foreign direct investment clearance. Since the company is fully foreign-owned, it must go through additional scrutiny.
Reports say the application has been put on hold. Officials are examining cross-holding structures linked to SpaceX, which owns Starlink. The ownership includes investors like Alphabet and Fidelity, apart from Elon Musk himself.
There is also a bigger backdrop here. SpaceX is planning a massive IPO with a target valuation of around 1.75 trillion US dollars, which is about ₹157.5 lakh crore. That scale brings more attention from regulators.
Why government concerns are rising?
Security is another key issue. Satellite internet works across borders, and that makes governments cautious.
Recent developments have raised flags: Reports of Starlink trminals being used in restricted regions like Iran, ongoing geopolitical tensions in areas close to India, and concerns about misuse of satellite communication networks.
The Department of Telecommunications has already introduced stricter rules for satellite broadband providers. These include additional security requirements for companies operating under GMPCS licences.
What happens next
Starlink is not out of the race yet. Senior executives are expected to meet government officials soon to discuss the proposal and address concerns.